Open enrollment already has your employees' attention. They're reviewing medical plans, comparing premiums, and thinking about what their families need next year. It's a natural moment to invite them to spend a few extra minutes on a benefit that's easy to overlook: the company retirement plan.

It's part of the package you provide

Your Retirement Plan isn't a side feature. It's a core part of the benefits you offer, and it reflects a real investment: the match, the plan administration, the investment menu, and the oversight behind it. Employees who don't pause to look at it may not realize how much they have available to them. A gentle reminder at open enrollment helps them see the whole picture and get more from what you're already doing for them.

Five things to encourage employees to review

1. 1. Contribution amount: Are they contributing enough to receive the full employer match? Even a 1% increase can make a meaningful difference over time.
2. 2. Beneficiaries: Life changes such as marriage, children, or divorce can leave designations out of date. It's a two-minute check with outsized importance.
3. 3. Investment fit: Do their current investments still match their goals, time horizon, and comfort with risk?
4. 4. Rebalancing: Markets move, and portfolios drift. A quick look, or an automatic rebalancing option if your plan offers one, keeps allocations on track.
5. 5. Old retirement accounts: Many employees have 401(k)s or 403(b)s left behind at former employers. Consider whether a rollover into your plan would simplify things, if your plan accepts them.

How sponsors can make it easy

- • Add a short "401(k)/403(b) check-up" section to your open enrollment materials.
- • Include a one-page checklist built from the five items above.
- • Point employees to the plan's website, mobile app, and available support.
- • Remind them of the match, and that their election can be changed at any time.
- • Consider offering a short optional session or one-on-one time with a plan representative.

A small step with a lasting payoff

You've built a valuable benefit. A modest, encouraging nudge at the right moment helps employees use it, which supports their long-term security and the goals you had in mind when you offered the plan. If it would be helpful to talk through how to bring a 401(k)/403(b) check-up into your open enrollment process, I'm happy to do that whenever it suits you.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5997758

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Is Your 401(k) Plan a Benefit…or a Talent Magnet?

In my work with plan sponsors, I see the same pattern again and again: the 401(k) gets treated as a compliance obligation rather than as a tool that actively shapes who chooses to work for you and how long they stay. I understand why. Fiduciary duties are real, the rules are unforgiving, and it's easy for a committee's attention to stay fixed on fee benchmarking and Form 5500 deadlines.

But I'd encourage every HR director, CFO, business owner, and committee member I work with to ask a second question alongside the compliance one: is this plan actually helping you compete for people?

Those are different questions, and the gap between them is where I spend most of my time advising clients.

What Does This Mean?

The data backs up what I see in practice. Vanguard's How America Saves research which is based on nearly five million participants, shows that improvements in retirement outcomes over the past two decades track plan design, not the economy. Automatic enrollment adoption grew from just 10% of plans in 2006 to 61% by year-end 2025, and the results are stark: participants in plans with automatic enrollment reach a 94% participation rate, compared with 64% in plans that rely on employees to opt in voluntarily. Plans with at least 1,000 participants have pushed adoption even further, with 79% now using automatic enrollment.

I tell clients this isn't a coincidence. It's behavioral economics doing exactly what it's supposed to do. When I help a sponsor redesign a plan, I'm not trying to make employees more financially disciplined. I'm trying to remove the friction that keeps disciplined intentions from turning into action.

The plans I consider genuinely competitive today typically combine several of the following:

• Automatic enrollment

• Automatic annual contribution increases

• A meaningful employer matching contribution

• Immediate eligibility for new hires

• A Roth contribution option

• Ongoing financial wellness education

• Personalized, one-on-one participant guidance

I rarely see one feature move the needle on its own. It's the combination paired with how clearly it's communicated that ultimately changes behavior.

Why Should Employers Care?

Because I know what it costs you when this goes unaddressed. Replacing an experienced employee can run well into a significant percentage of that person's annual compensation once you account for recruiting, onboarding, lost productivity, and training. I've sat in enough budget conversations to know that number gets leadership's attention faster than almost anything else I can show them.

At the same time, when I talk to plan sponsors about why their employees value the retirement plan, the answer is rarely "the match formula" in isolation. It's the sense that the company is investing in their future, not just their current paycheck. That perception compounds. The latest Vanguard data shows nearly 45% of participants increased their savings rate in 2025, pushing the average combined savings rate to a record 12.1%, driven almost entirely by plan design rather than market conditions or economic optimism. When I see that kind of shift in a client's own participant data, it's almost always traceable to a specific design change, not a change in how employees feel about the economy.

So when a client asks me whether the retirement plan is "worth the investment" compared to other benefits, my answer is consistent: it's one of the few benefits I can show you moving both your hiring conversations and your retention numbers at the same time.

Three Plans I've Watched Transform Hiring and Retention

The examples below are composites drawn from patterns I've seen repeatedly across several plan sponsors, but each reflects real design decisions and real outcomes I've guided organizations through.

The manufacturer that fixed onboarding, not attitudes. A regional manufacturing client of mine had decent intentions among hourly employees but inconsistent enrollment. However, people meant to sign up and never finished the paperwork during their first chaotic weeks on the job. I recommended three changes: immediate eligibility, automatic enrollment at a meaningful default rate, and automatic annual escalation, paired with simple orientation materials instead of a dense enrollment packet. Within a year, participation climbed sharply and far fewer employees were leaving match dollars on the table in their first year. What struck me wasn't that employees suddenly cared more about saving, they always had. We just stopped requiring them to fight the process to do it.

The firm that didn't need a richer match. It needed better conversations. A professional services client already offered a generous match, but I noticed in the data that a large share of employees were contributing just enough to get part of the match and stopping there. Rather than touch the plan design, I worked with them to build periodic workshops, recurring office hours with me directly, and personalized projections addressing the questions I hear most often: am I saving enough, should I be using Roth, am I invested appropriately, should I consolidate an old 401(k)? Contribution rates rose, more employees captured their full match, and HR told me the plan started showing up in employee engagement survey comments unprompted. Sometimes my best recommendation isn't a new feature, but rather it's helping people understand the one they already have.

The small employer that stopped trying to out-salary larger competitors. A privately held client kept losing finalist candidates to national firms with bigger compensation budgets. I helped them redesign the plan around immediate eligibility, automatic enrollment, a more competitive match, a Roth option, and I trained their recruiters to talk about the plan during interviews rather than waiting until an offer letter. Within eighteen months, their offer-acceptance rate improved, voluntary turnover declined, and the retirement plan started showing up as a named strength in their own employee surveys. The plan had become part of how they recruited, not just something HR mentioned during onboarding.

What Should Employers Consider Next?

When I sit down with a committee for an annual review, I push them past the compliance checklist with questions like these:

Would a candidate weighing your offer against a competitor's see your retirement plan as an advantage, or as forgettable? How much friction does a new hire face before their first contribution actually happens? Are your employees saving at a rate that puts them on track for retirement readiness, or just at the minimum needed to get the match? Do employees actually understand what your match is worth to them in dollar terms? Are you offering education throughout the year, or only during a single open enrollment window? Would automatic escalation or a Roth option change outcomes for a meaningful share of your workforce? And when an employee has a real question, do they have someone to ask, or are they left to figure it out alone?

If you can't answer those confidently, that's not a failure. It's usually the starting point of the work I do with a client.

The Bottom Line

The plans I consider strongest do more than satisfy ERISA. They reinforce the culture an employer is trying to build, demonstrate a real investment in people's futures, and give that employer something concrete to point to in a competitive hiring conversation.

I tell every client the same thing heading into their fiduciary review: don't stop at "is this plan compliant." Ask me whether it's competitive. In my experience, a retirement plan built around thoughtful design, real employer contributions, automatic features, and ongoing guidance becomes one of the most effective tools an organization has for winning the candidates it wants and keeping the employees it can't afford to lose.

This article reflects general guidance based on current plan design trends and publicly available research, including Vanguard's How America Saves. It is not legal, tax, or individualized financial advice. Plan design changes, including automatic enrollment, automatic escalation, and student loan matching, involve specific compliance and recordkeeping requirements under SECURE 2.0 and ERISA. I'd recommend reviewing any changes with your recordkeeper and ERISA counsel before implementation.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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When most of us think about retirement planning, we think about contributing to our 401(k) or 403(b), choosing the right investment mix, and figuring out when to start Social Security. Healthcare costs often get left out of the conversation entirely, or treated as an afterthought. That's worth fixing. For many retirees, healthcare ends up being one of the largest expenses they'll face, and it's also one of the most misunderstood. The good news: a little planning now can save you a lot of stress later, and you don't need to be a healthcare expert to get started.

Why Healthcare Costs Deserve Their Own Plan

Healthcare in retirement isn't just "whatever Medicare covers." Premiums, deductibles, copays, dental and vision care, and the possibility of long-term care can add up to a substantial portion of your retirement budget. Costs also tend to rise faster than general inflation, which means the number you have in mind today may not be the number you'll actually need.

To put a real number on it: Fidelity's most recent Retiree Health Care Cost Estimate found that a 65-year-old retiring today should expect to spend roughly $172,500 on healthcare over the course of retirement, or about $345,000 for a couple, and that figure doesn't even include long-term care. For context, that estimate has more than doubled since Fidelity began tracking it in 2002, when it stood at around $80,000. It's a big number, but the point isn't to alarm you, it's to make the planning feel concrete rather than abstract.

The goal isn't to scare you. It's to help you build healthcare into your overall retirement plan the same way you'd plan for housing or travel, so it doesn't catch you off guard.

Medicare 101: The Basics You Need

Medicare is the foundation of healthcare coverage for most people starting at age 65, but it doesn't cover everything, and timing matters.

Part A (hospital insurance) is usually premium-free if you or your spouse paid Medicare taxes for at least 10 years. It covers inpatient hospital stays, skilled nursing facility care, and some home health care.

Part B (medical insurance) covers doctor visits, outpatient care, and preventive services, but it comes with a monthly premium. For 2026, the standard Part B premium is $202.90 per month, with an annual deductible of $283. Higher earners pay more through something called IRMAA (Income-Related Monthly Adjustment Amount), which is based on your tax return from two years prior; in 2026, the surcharge kicks in once income exceeds $109,000 for single filers or $218,000 for joint filers, and total monthly Part B premiums for higher earners can range from roughly $284 up to $690, depending on income. This is worth knowing if you're planning a high-income year close to retirement, such as a large Roth conversion, since the income from that year can bump up your premiums two years down the road.

Part C (Medicare Advantage) is an alternative to traditional Medicare offered through private insurers, often bundling in extra benefits like dental or vision.

Part D (prescription drug coverage) helps with medication costs and, like Part B, can carry an income-based surcharge.

One detail that trips people up: if you're still working past 65 and have employer coverage, you may be able to delay enrolling in Medicare without penalty, but only under certain conditions. If you miss your enrollment window without qualifying coverage, you could face permanent late-enrollment penalties. If you're approaching 65, it's worth checking your specific situation well before your birthday.

The Gap Years: Retiring Before 65

If you're hoping to retire before age 65, healthcare is one of the biggest financial puzzles to solve, since Medicare eligibility doesn't start until then. Options typically include COBRA continuation coverage, a marketplace plan, a spouse's employer plan, or in some cases retiree coverage offered by your employer. Each comes with different costs and trade-offs, so it's worth mapping this out years in advance rather than scrambling as your retirement date approaches.

Don't Overlook the HSA

If you have access to a Health Savings Account through a high-deductible health plan, it may be one of the most powerful tools available to you for retirement healthcare planning. HSAs offer a rare triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free too. Unlike a Flexible Spending Account, HSA balances roll over year to year and stay with you even after you change jobs or retire.

Many people use their HSA as a pass-through account, contributing and then immediately spending on current medical costs. But if your budget allows, consider paying current medical expenses out of pocket and letting your HSA balance grow. Over time, it can become a dedicated fund for healthcare costs in retirement, including Medicare premiums (though not supplemental Medigap premiums).

The Long-Term Care Question

Long-term care, whether that's an in-home aide, assisted living, or a nursing facility, is one of the most expensive and least planned-for parts of retirement. Here's an important distinction: Medicare generally does not cover long-term custodial care. It covers short-term skilled nursing after a hospital stay, but not the ongoing help with daily activities that many people eventually need.

There's no one-size-fits-all answer for how to prepare. Some people choose long-term care insurance, which can be expensive and varies widely in coverage. Others self-insure by setting aside dedicated savings. Some look at hybrid life insurance or annuity products with long-term care riders. The right approach depends on your health, family history, assets, and how much risk you're comfortable carrying yourself. The earlier you start thinking about it, the more options you'll have, since long-term care insurance becomes harder and more expensive to get as you age or if your health changes.

Practical Steps You Can Take Now

A few things are worth doing regardless of how far away retirement feels:

First, estimate your future healthcare costs realistically rather than guessing. There are online tools and calculators that can give you a ballpark figure based on your age, health, and where you plan to retire.

Second, if you have an HSA, contribute consistently and consider letting it grow rather than spending it down each year.

Third, talk to your benefits team or financial advisor about how your specific retirement plan, pension, or employer benefits interact with Medicare. Some employers offer retiree health benefits or Medicare supplement subsidies that can change your math significantly.

Fourth, build a rough long-term care plan, even a simple one. Knowing your general approach, whether that's insurance, savings, or family support, removes a lot of uncertainty.

Finally, revisit your plan periodically. Healthcare policy, your income, and your health all change over time, so this isn't a one-and-done exercise.

The Bottom Line

Healthcare costs in retirement are significant, but they're also plannable. You don't need to have every detail figured out today, and you certainly don't need to become a Medicare expert overnight. What matters is starting the conversation early, understanding the basic building blocks like Medicare and HSAs, and thinking honestly about long-term care before you're in a position where you need it urgently.

If you're not sure where to start, that's completely normal, and it's exactly what your retirement plan's resources are there for. Take a look at the educational tools available through your plan, sit in on a benefits webinar if one's offered, or reach out to schedule time with a plan advisor to talk through your specific situation. A short conversation now can make a real difference in how prepared you feel later.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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As a Benefits Advisor, I’ve seen a noticeable uptick in members receiving letters from their health insurance plans about hospital contract negotiations. These notices often arrive with urgent-sounding language and can trigger unnecessary panic. The good news? Most of these communications are routine, required by regulations, and do not mean you’re losing coverage or facing immediate changes.

This FAQ explains the basics in plain language so you can feel more confident navigating the process.

What are hospital contract negotiations?

Health insurance companies (payers) and hospitals (providers) negotiate contracts that determine how much the insurer pays the hospital for services and what members pay out-of-pocket (copays, coinsurance, deductibles). These agreements cover rates, covered services, network participation, and administrative rules.

Contracts typically last 1–3 years (sometimes longer). When they near expiration, the parties renegotiate. If they don’t reach a new agreement quickly, the hospital may temporarily go “out-of-network” with that insurer until a deal is finalized.

Why am I suddenly getting notices about this?

State and federal regulations often require insurers to notify members in advance of potential network changes. These notices must be sent within specific timeframes (e.g., 30–60 days before a contract expires or a change takes effect). Insurers send them proactively—even while negotiations are ongoing—to comply with the law.

The tone can sound alarming because regulators want members to have time to make informed decisions. In reality, the vast majority of negotiations resolve successfully, and the hospital stays in-network with little or no disruption for members.

Does a negotiation notice mean my hospital will no longer be covered?

Not necessarily. Many contracts are renewed or extended while talks continue. A notice is often a “just in case” communication.

In-network status means lower out-of-pocket costs for you.
If a hospital does go out-of-network temporarily, your plan usually has contingency protections (e.g., continued coverage at in-network rates for ongoing treatments, or “hold harmless” provisions that prevent balance billing for certain services).

Always check your plan’s Explanation of Benefits (EOB) or member portal for the most current network status rather than relying solely on the notice.

What should I do if I receive one of these notices?

Stay calm and read carefully — Note the effective dates and any specific services or hospitals mentioned.
Verify network status — Log into your insurer’s website or app, or call the member services number on your insurance card. Search for your preferred hospital or doctors.
Review alternatives — Most plans have multiple in-network hospitals. Ask about other facilities in your area.
Contact your Benefits Advisor or HR — We can help interpret the notice, check for updates, and explore options.
Don’t delay necessary care — If you have an upcoming procedure, contact your doctor’s office and the insurer to confirm coverage details.

Will my premiums or out-of-pocket costs go up because of these negotiations?

Rate changes are more often driven by overall medical inflation, plan design, and utilization trends—not a single hospital negotiation. If a hospital’s rates increase significantly, it can contribute to future premium pressure, but insurers work to balance costs across their entire network. Many plans include tools like price transparency, reference-based pricing, or centers of excellence to help control costs.

What happens if a hospital actually goes out-of-network?

Emergency care: Usually covered at in-network rates regardless of network status (by law in most cases).
Ongoing treatment: Plans may allow continuity of care for active courses of treatment (chemotherapy, surgery recovery, pregnancy, etc.).
Balance billing: Many states protect consumers from surprise bills where the hospital charges you the difference between their full rate and what insurance pays.
Transition period: Insurers frequently negotiate short-term extensions or “bridge” agreements to minimize disruption.

How common are these negotiation-related disruptions?

They are relatively common but rarely result in long-term network drops. Major health systems and large insurers negotiate frequently, and the public nature of some high-profile disputes can make it seem more chaotic than it is for the average member. Most reach agreements before major impacts occur.

Tips for managing your health coverage proactively

Use your insurer’s provider directory regularly (it updates more frequently than annual notices).
Build relationships with your primary care provider—they can help navigate specialists and facilities.
Consider a Health Savings Account (HSA) or Flexible Spending Account (FSA) if eligible, to buffer against potential cost-sharing.
Ask questions early: Open enrollment is a great time to review network adequacy.

Final thoughts

Contract negotiations are a normal part of the health insurance ecosystem. The notices you receive are designed to inform you, not alarm you. By understanding the process, you can focus on what matters most—getting the care you need without unnecessary stress.

If you’ve received a notice and would like help reviewing it, checking network options, or exploring plan alternatives, reach out to me directly. As your benefits broker, I’m here to advocate for you and cut through the noise.

Have questions about your specific plan or a notice you received? Drop a comment below or contact our office. We’re happy to help provide clarity tailored to your situation.

Disclaimer: This post is for educational purposes and is not a substitute for personalized advice. Always verify details with your insurance carrier and consult professionals for your individual circumstances. Information reflects general U.S. practices as of 2026 and can vary by state and plan.

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When most people think about financial planning, they picture investments, returns, or picking the “right” funds in their retirement plan.

But meaningful financial progress doesn’t start there.

It starts with you; your values, your goals, and what truly matters in your life.

Financial life planning is not about chasing performance. It’s about building a thoughtful, coordinated process that aligns every part of your financial life with the life you want to live.

1. Start With What Matters Most

Before any numbers or strategies come into play, take a step back and reflect:

What does a fulfilling life look like to me?
What are my top priorities. Now and in the future?
What does retirement mean beyond just “not working”?

For some, it’s freedom and flexibility. For others, it’s security, family, or the ability to give back.

Your financial plan should reflect these answers. Not someone else’s definition of success.

Clarity here drives every decision that follows.

2. Build Around Your Goals. Not Just Your Accounts

Once your priorities are clear, your financial strategy should begin to take shape. This is where a true planning process comes into focus.

It’s not just about your workplace retirement plan. It’s about how all the pieces of your financial life work together, including:

Retirement income planning – How your savings turn into a reliable paycheck in retirement
Asset location – Placing investments in the right types of accounts (tax-deferred, Roth, taxable)
Tax planning – Being thoughtful about how and when income is recognized
Insurance planning – Protecting against risks that could derail your progress
Estate and legal planning – Ensuring your wishes are carried out and your family is supported

Each of these areas plays a role. When coordinated well, they create a more complete and resilient plan.

3. Focus on What You Can Control

A disciplined approach emphasizes the factors you can actually influence:

Saving consistently
Keeping costs low
Maintaining appropriate diversification
Staying invested through market cycles

Markets will move and sometimes unpredictably. A sound plan doesn’t try to outguess those movements. Instead, it’s built to endure them.

This is where process matters more than prediction.

4. Invest With Purpose

Your investment strategy should reflect your goals, time horizon, and comfort with risk. Not short-term headlines.

That means:

Avoiding emotional decisions during market volatility
Maintaining a diversified portfolio aligned with your plan
Understanding that risk and return are connected

The goal isn’t to eliminate risk, it’s to take the right amount of risk for your situation so you can stay on track.

5. Revisit and Adjust Over Time

Life changes and your plan should, too.

As your career evolves, your family grows, or retirement gets closer, your priorities may shift. Regular check-ins help ensure your strategy continues to align with what matters most.

Think of financial planning as an ongoing relationship with your future and not a one-time event.

A Real-Life Example

Consider Laura, a 42-year-old employee participating in her company’s retirement plan.

At first, Laura focused only on her 401(k), contributing enough to get the match and choosing a few funds she felt comfortable with. But she wasn’t sure if she was truly on track.

When she stepped back and went through a financial life planning process, a few important things became clear:

Her top priority wasn’t early retirement. It was flexibility in her late 50s to scale back work and spend more time with family.
She realized most of her savings were in pre-tax accounts, so she began adding Roth contributions to improve future tax flexibility.
She updated her beneficiaries and estate documents, something she hadn’t revisited in years.
She reviewed her insurance coverage to ensure her family would be protected if something unexpected happened.
And importantly, she began thinking about how her savings would translate into retirement income, not just an account balance.

Nothing about Laura’s situation required a drastic change. Instead, small, thoughtful adjustments, aligned with what mattered most to her, helped create a clearer, more confident path forward.

Bringing It All Together

Financial life planning is about connecting the dots.

It’s aligning your:

Goals
Investments
Income
Taxes
Protection strategies
Legacy wishes

…into one cohesive plan designed around you.

When each piece is working together, decisions become clearer and more intentional.

Final Thought

You don’t need to have everything figured out today.

Start with what matters most. Build a process around it. Stay consistent.

Over time, those thoughtful decisions can turn into something much more meaningful than just financial progress. They can support a life that truly reflects who you are and what you value.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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If you’ve recently joined your organization’s retirement plan committee, one of the most important responsibilities you’ll share is overseeing the plan’s investment lineup. For many, this can feel like stepping into unfamiliar territory with new terminology, new expectations, and real fiduciary responsibility.

The good news? You don’t need to be an investment expert to be a good fiduciary. What matters most is having a thoughtful process, asking the right questions, and staying focused on participant outcomes.

Here are four key areas to guide your approach.

1. Start with the Participant in Mind

At its core, your investment lineup should serve the needs of your employees and not the preferences of the committee.

Think about:

What is the general level of financial literacy among employees?
Are participants engaged, or do most rely on defaults?
What age demographics are represented (early career vs. nearing retirement)?

For many plans, this leads to a lineup anchored by qualified default investment alternatives (QDIAs) like target-date funds, complemented by a simplified menu of core options.

A helpful philosophy: make the right decision the easy decision. If participants do nothing, they should still be on a solid path.

2. Emphasize Simplicity Over Complexity

More investment options do not necessarily lead to better outcomes. In fact, too many choices can overwhelm participants and lead to inaction.

A well-constructed lineup often includes:

A target-date fund suite (as the default)
A small set of diversified core funds (e.g., U.S. equity, international equity, fixed income)
Possibly a capital preservation option (stable value or money market)

The goal is not to offer everything, but rather it’s to offer what’s necessary and useful.

From a fiduciary standpoint, simplicity can improve participant engagement and reduce the risk of poor decision-making.

3. Focus on Process, Not Predictions

One of the most common misconceptions is that committees are expected to “pick winners.” In reality, fiduciary responsibility is less about predicting performance and more about following a prudent, documented process.

This includes:

Establishing an Investment Policy Statement (IPS)
Defining clear criteria for selecting and monitoring funds
Regularly reviewing investments against those criteria

A consistent process demonstrates diligence and helps ensure decisions are made in the best interest of participants and not based on short-term market noise.

4. Understand Fees and Value

Fees matter, but context matters more.

Rather than simply selecting the lowest-cost funds, focus on value relative to cost:

Are participants receiving appropriate diversification?
Are the funds aligned with their intended role in the lineup?
Is performance reasonable given the strategy and market conditions?

Transparency is key. Committee members should understand:

Investment expense ratios
Recordkeeping and administrative costs
How fees impact participant outcomes over time

A thoughtful evaluation of fees is an essential part of fulfilling your fiduciary duty.

A Short Case Study: Turning Complexity into Clarity

A mid-sized manufacturing company with 120 employees had built its investment lineup over time by adding funds reactively rather than intentionally. By the time a new committee was formed, the plan offered 28 investment options, including multiple funds in the same asset class.

What they observed:

Over 60% of participants were invested in just 3–4 funds
Many employees held overlapping funds without realizing it
New hires were defaulting into a target-date fund but then moving out within months, often into more conservative options

The committee paused and asked a simple question: Is our lineup helping or hindering good decisions?

What they did:

Consolidated the lineup to 12 core options
Designated a single, well-structured target-date suite as the QDIA
Clarified each fund’s role within the lineup (no duplication)
Reviewed fees and replaced a few higher-cost funds where appropriate
Paired the changes with a simple participant communication campaign

The result:

Increased usage of the target-date funds as a long-term solution
Improved diversification among self-directed participants
Fewer “reactionary” investment changes during market volatility
Greater confidence from the committee in their fiduciary process

The takeaway: progress didn’t come from finding better funds. It came from creating a clearer, more intentional structure.

Bringing It All Together

Selecting an investment lineup is not a one-time decision, it’s an ongoing responsibility. The most effective committees:

Stay focused on participant outcomes
Keep the lineup clear and purposeful
Follow a disciplined process
Revisit decisions regularly with intention

This is where thoughtful plan design and participant guidance come together. A well-structured lineup, paired with clear communication and education, can meaningfully improve retirement readiness.

Final Thoughts

If you’re new to a plan committee, remember: you don’t have to have all the answers. You just need to ask the right questions and commit to a prudent process.

Done well, your role has a real impact. You’re not just selecting funds but rather helping employees build financial security for the future.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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For many plan sponsors, the question is no longer whether to implement automatic features, it’s how to do it well.

With the continued evolution of legislation like SECURE 2.0 and a growing focus on participant outcomes, auto-enrollment and auto-escalation have become foundational plan design tools. But like any powerful tool, their impact depends on how thoughtfully they’re implemented.

This is where thoughtful plan design and participant guidance come together.

Let’s walk through a real-world case study, followed by a balanced look at the pros, tradeoffs, and what the research tells us.

Case Study: Turning Inertia into Progress

Employer Profile: Mid-sized manufacturing firm (250 employees)

Plan Design (Before):

Voluntary enrollment (opt-in)
Participation rate: 62%
Average deferral rate: 5.1%

Plan Design (After Enhancements):

Auto-enrollment at 6% default
Auto-escalation of 1% annually up to 10%
Default investment: target date solution
Re-enrollment campaign with education

Results After 18 Months:

Participation increased to 91%
Average deferral rate increased to 7.8%
Meaningful increase in employer match utilization

What changed?

Not the intent of employees but rather the structure around their decisions.

Auto features didn’t create new motivation, they removed friction.

Why It Works: The Behavioral Advantage

At the core of automatic features is a simple insight:

Most employees intend to save but don’t act.

Research shows:

68% of employees say they should save more
Only ~3% actually follow through without intervention (NBER)

Auto-enrollment flips the default. Instead of requiring action to participate, it requires action not to. That shift alone can dramatically improve outcomes.

The Pros: Where Automatic Features Shine

Increased Participation

Auto-enrollment consistently drives participation rates above 85–90% in many plans (BDO)

This is especially impactful for:

Younger employees
Lower-income workers
First-time savers

Improved Savings Behavior Over Time

Auto-escalation helps participants gradually increase contributions without feeling it all at once.

It aligns saving with:

Pay increases
Career progression
Behavioral comfort

Better Alignment with Retirement Outcomes

When auto-enrollment and escalation are combined, success rates (adequate retirement income) can increase dramatically.

One study showed improvement from:

~46% probability of success → ~79% when multiple plan design features were applied (PubMed)

That’s the difference between “participating” and “on track.”

Stronger Employer Value Proposition

Automatic features:

Simplify decision-making
Increase perceived benefit value
Demonstrate employer commitment to financial well-being

The Tradeoffs: Where Sponsors Need to Be Intentional

Automatic features are powerful, but they are not perfect.

Default Rates Can Become Anchors

Employees often stay at the default.

A 3–6% default may:

Improve participation
But unintentionally cap savings behavior

Cash Flow Sensitivity

Some employees, especially lower-income, may opt out due to immediate budget pressure.

Design matters:

Too high → opt-outs increase
Too low → savings fall short

Leakage Still Undermines Outcomes

Even with strong plan design, participant behavior outside the plan matters.

Research shows:

Cash-outs at job change significantly reduce long-term impact (CNBC)
A meaningful portion of balances are withdrawn during transitions

Auto features help, but they don’t solve everything.

Escalation Opt-Out Behavior

Auto-escalation participation tends to decline over time as participants opt out of increases.

This highlights a key reality:

Automation gets people started, but engagement sustains progress.

What the Research Really Says

There’s a tendency to think of auto features as a silver bullet. The data tells a more nuanced story:

What’s clearly true:

Participation increases materially
Savings rates improve
Outcomes are better than opt-in designs

What’s also true:

The impact is positive. But more modest than originally expected (CNBC)
Human behavior (opt-outs, job changes, cash-outs) reduces long-term effectiveness

In other words: Plan design drives momentum. But participant behavior determines outcomes.

Where Plan Sponsors Can Elevate the Outcome

The most effective plans don’t just implement auto features, they integrate them into a broader strategy:

Start with the Right Defaults

6%+ enrollment baseline
Escalation toward 10–12%

Pair Automation with Communication

“Why it matters” messaging
Annual check-in prompts
Clear visibility into employer match

Address Leakage

Rollover education
Portability solutions
Terminated participant outreach

Re-enroll and Reset When Needed

Periodic re-enrollment can realign participants with stronger defaults.

Final Thought

Auto-enrollment and auto-escalation are not just plan features, they’re behavioral design tools.

When implemented thoughtfully, they:

Remove friction
Create momentum
Improve outcomes at scale

But the real value emerges when automation is paired with guidance.

Because the goal isn’t just participation.

It’s progress.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

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As more employees approach retirement, one question continues to rise to the surface:

“How do I turn my savings into a reliable paycheck?”

With the passage of the SECURE 2.0 Act, employers now have more flexibility to incorporate in-plan income solutions, including annuities, directly into their retirement plans. At the same time, participants still have access to out-of-plan income strategies once they leave employment or roll over their assets.

For HR leaders and CFOs, this creates both an opportunity and a decision point.

Why Income Guarantees Are Gaining Attention

For years, retirement plans have done an excellent job helping employees accumulate assets. But as retirement gets closer, the focus naturally shifts:

• Will my money last?

• How do I create consistent income?

• What happens if markets decline early in retirement?

Income guarantees, typically through annuity structures, help address these concerns by converting a portion of savings into predictable, often lifetime income.

In-Plan Income Guarantees: Pros and Considerations

What It Means

An in-plan solution allows participants to allocate a portion of their workplace retirement plan into an income product while still inside the plan.

Advantages:

• Simplicity and Access
Participants can elect income features within a familiar environment; no rollover required.

• Institutional Pricing
Plans may offer lower-cost options due to scale and fiduciary oversight.

• Fiduciary Vetting
Plan sponsors evaluate and monitor providers, helping bring a level of due diligence to the selection.

• Behavioral Benefits
Participants are more likely to engage with income solutions when they’re built into the plan experience.

Considerations:

• Fiduciary Responsibility
Adding an income solution introduces ongoing oversight, including insurer selection and monitoring.

• Portability Limitations
Income features may not always transfer seamlessly if an employee changes jobs.

• Plan Complexity
Additional features can increase administrative and communication demands.

• Limited Customization
Plan-based options may not fit every participant’s unique financial situation.

Out-of-Plan Income Guarantees: Pros and Considerations

What It Means

Participants roll assets to an IRA or other vehicle and purchase an income solution independently.

Advantages:

• Flexibility
Participants can tailor income strategies to their personal goals and timelines.

• Broader Selection
The retail marketplace offers a wide range of products and features.

• Portability
Income strategies are not tied to an employer plan.

• Integrated Planning
Allows coordination with tax, estate, and broader financial planning strategies.

Considerations:

• Potentially Higher Costs
Retail pricing may be higher depending on the structure.

• Decision Complexity
Participants must navigate choices without the built-in framework of a plan.

• Advice Dependency
Outcomes often depend on the quality of guidance received.

• Behavioral Risk
Without structure, some participants delay or avoid converting assets into income.

Why Consider One Over the Other?

There’s no one-size-fits-all answer and that’s exactly the point.

In-plan solutions can be especially effective when the goal is to:

• Increase access and participation across the workforce

• Provide a simplified, guided experience

• Leverage fiduciary oversight to support better outcomes

Out-of-plan solutions may be more appropriate when:

• Participants have more complex financial needs

• Customization becomes a priority

• Individuals are working closely with a financial advisor

A Practical Takeaway for Plan Sponsors

This doesn’t have to be an either/or decision.

Forward-thinking employers are increasingly viewing in-plan income as a foundational option, while recognizing that some participants will benefit from more personalized, out-of-plan strategies.

This is where thoughtful plan design and participant guidance come together.

The real opportunity is helping employees make the shift from focusing on how much they’ve saved to understanding how that savings can generate income they can rely on.

That’s where confidence increases and where plan sponsors can make a meaningful impact.

Final Thought

As income solutions continue to evolve, so does the role of the plan sponsor from offering a savings vehicle to supporting a more complete retirement income strategy.

Taking the time to evaluate these options today can help position your plan, and your people, for greater confidence tomorrow.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine waht is appropriate for you, please contact me directly or consult another qualified professional

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5341149

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What is RxDC Reporting?

RxDC (Prescription Drug Data Collection) reporting is a requirement under the Consolidated Appropriations Act (CAA) of 2021. The purpose of this reporting is to provide the Centers for Medicare & Medicaid Services (CMS) with data on prescription drug costs and health care spending. The information collected helps federal agencies analyze trends in drug pricing, understand how prescription costs impact premiums, and promote transparency in the healthcare market.

Employers sponsoring health plans—whether fully insured, level-funded, or self-funded—must ensure compliance with RxDC reporting requirements. Understanding your responsibilities based on the type of plan you offer is crucial for compliance and avoiding potential penalties.

Employer Responsibilities by Plan Type

Fully Insured Health Plans

Employers with fully insured health plans generally have limited responsibilities regarding RxDC reporting. The health insurance carrier is responsible for submitting the required data to CMS. However, employers should:

•Confirm with their insurer that the reporting will be completed on their behalf.

•Request documentation from the insurer confirming submission.

•Retain records of compliance in case of future audits or inquiries.

Level-Funded Health Plans

Level-funded plans are a hybrid between fully insured and self-funded plans, where the employer pays a set monthly amount but retains some financial risk. The reporting responsibilities for level-funded plans can vary depending on the insurer’s role. Employers should:

•Determine whether their carrier will handle the RxDC reporting.

•If the insurer does not report on their behalf, coordinate with third-party administrators (TPAs) or pharmacy benefit managers (PBMs) to ensure data submission.

•Maintain documentation of the reporting process and ensure compliance deadlines are met.

Self-Funded Health Plans

For self-funded plans, the employer holds the primary responsibility for RxDC reporting. However, third-party administrators (TPAs) or pharmacy benefit managers (PBMs) may assist with the process. Employers should:

•Confirm if their TPA or PBM will submit the RxDC report.

•If the TPA or PBM does not handle submission, ensure data collection and timely reporting to CMS.

•Keep records of the submission process for compliance verification.

Key Deadlines and Compliance Considerations

RxDC reporting is due annually, typically by June 1st for data from the previous calendar year. Employers should:

•Start discussions with insurers, TPAs, or PBMs well in advance of the deadline.

•Ensure all required data—including total health care spending, prescription drug costs, and premium information—is accurately compiled.

•Monitor regulatory updates, as reporting requirements may evolve over time.

Final Thoughts

RxDC reporting is an essential compliance requirement for employer-sponsored health plans. While fully insured employers have minimal direct responsibilities, those with level-funded and self-funded plans must take a proactive approach to ensure timely and accurate reporting. By working closely with insurers, TPAs, and PBMs, employers can fulfill their obligations, avoid compliance risks, and contribute to greater transparency in healthcare costs.

If you have questions about your responsibilities or need assistance with RxDC reporting, consult your Rose Street Advisors team for assistance. If you are not a current client of Rose Street Advisors, please feel free to contact us at 269-552-3200 or contact@rosestreetadvisors.com to speak to someone.

Justine Dickens

EMPLOYEE BENEFITS ADVISOR

Justine is a devoted and meticulous team member with a passion to educate and support business partners and their employees. Since 2013, Justine’s commitment to her clients has allowed her to instill confidence and stability in the benefits packages offered to their employees. Her strengths allow her to communicate efficiently, focus on customization and understand the complexities of an ever changing industry. She is a Dale Carnegie Graduate and has her NAHU Self-Funded Certification.

When she is not working, Justine is busy running her son and daughter to their practices and games and volunteering in the community. She enjoys playing golf, hiking and spending time with her family and friends.

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Top 5 Administrative Failures in Employer-Sponsored Retirement Plans and How to Prevent Them

Managing an employer-sponsored retirement plan can be complex, and even well-intentioned plan sponsors can encounter administrative failures. Here are the top five common failures and practical suggestions to prevent them:

1. Failure to Follow Plan Terms

Failure: Not adhering to the specific terms outlined in the plan document, such as compensation definitions or eligibility criteria. Prevention: Regularly review and understand the plan document. Ensure clear communication between HR, payroll, and plan administrators.

2. Missed Enrollment of Eligible Employees

Failure: Failing to enroll eligible employees in the plan, leading to missed contributions and potential compliance issues. Prevention: Implement automated enrollment processes and conduct periodic audits to ensure all eligible employees are enrolled.

3. Incorrect Loan Repayments

Failure: Not properly withholding or collecting loan repayments, resulting in defaulted loans and potential tax penalties. Prevention: Establish robust loan administration procedures and regularly monitor loan repayments to ensure compliance.

4. Late RMDs (Required Minimum Distributions)

Failure: Failing to distribute the required minimum amounts to participants who have reached the age for RMDs, leading to penalties. Prevention: Set up automated reminders and tracking systems to ensure timely distributions.

5. Inconsistent Record-Keeping

Failure: Inaccurate or incomplete record-keeping, which can lead to errors in contributions, distributions, and compliance testing. Prevention: Maintain meticulous records and conduct regular audits to ensure accuracy and completeness.

By addressing these common administrative failures, plan sponsors can enhance the efficiency and compliance of their retirement plans, ultimately benefiting both the employer and the employees.

Scott Higgins | AIF ®, CFP®,CPFA®, NSSA®

Financial Advisor

Since 2012 at Rose Street, Scott has been responsible for helping the firm's individual wealth management clients with income strategies for retirement and consulting with employers with their employee retirement plans. In free time, he enjoys golf, biking, skiing, cooking, and traveling. Fun Fact, Scott has a hobby of filling growlers with coins!

It's part of the package you provide

Five things to encourage employees to review

How sponsors can make it easy

A small step with a lasting payoff

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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Is Your 401(k) Plan a Benefit…or a Talent Magnet?

What Does This Mean?

Why Should Employers Care?

Three Plans I've Watched Transform Hiring and Retention

What Should Employers Consider Next?

The Bottom Line

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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Why Healthcare Costs Deserve Their Own Plan

Medicare 101: The Basics You Need

The Gap Years: Retiring Before 65

Don't Overlook the HSA

The Long-Term Care Question

Practical Steps You Can Take Now

The Bottom Line

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

What are hospital contract negotiations?

Why am I suddenly getting notices about this?

Does a negotiation notice mean my hospital will no longer be covered?

What should I do if I receive one of these notices?

Will my premiums or out-of-pocket costs go up because of these negotiations?

What happens if a hospital actually goes out-of-network?

How common are these negotiation-related disruptions?

Tips for managing your health coverage proactively

Final thoughts

Let's Talk

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1. Start With What Matters Most

2. Build Around Your Goals. Not Just Your Accounts

3. Focus on What You Can Control

4. Invest With Purpose

5. Revisit and Adjust Over Time

A Real-Life Example

Bringing It All Together

Final Thought

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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A Short Case Study: Turning Complexity into Clarity

Bringing It All Together

Final Thoughts

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Case Study: Turning Inertia into Progress

Why It Works: The Behavioral Advantage

The Pros: Where Automatic Features Shine

The Tradeoffs: Where Sponsors Need to Be Intentional

What the Research Really Says

Where Plan Sponsors Can Elevate the Outcome

Final Thought

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Why Income Guarantees Are Gaining Attention

In-Plan Income Guarantees: Pros and Considerations

Advantages:

Considerations:

Out-of-Plan Income Guarantees: Pros and Considerations

Advantages:

Considerations:

Why Consider One Over the Other?

A Practical Takeaway for Plan Sponsors

Final Thought

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

What is RxDC Reporting?

Employer Responsibilities by Plan Type

Key Deadlines and Compliance Considerations